How Uber Rush is set to challenge giants UPS and FedEx
In an attempt to expand its business even further, rideshare giant Uber’s latest creation Uber Rush will now bring items to you instead of the other way around.
RELATED TOPIC: Slow delivery equals slow death in ecommerce
With it now also up and running in Chicago and San Francisco, the latest invention allows customers to get what they want, when they want it.
In the United States, 20 per cent of all trips are moving things from point A to B. Although a lot of time and energy would be saved if every local business delivered, it’s just not logistically feasible.
Not only will this new service help consumers, it will help out businesses as well with its ability to order and track deliveries instantly, expand delivery zones and integrate with existing tools and platforms.
Making it even more efficient is Uber Rush’s ability to pick up multiple packages from multiple locations, similar to UPS and FedEx. Although passengers and packages will ride separately for now, Uber Rush drivers will be trained on how to position themselves, how to handle package deliveries and how long to wait for deliveries.
In New York, deliveries can also be made on foot or by bicycle.
If Uber Rush is able to find a balance between efficiency, supply and demand, it could cause huge problems for companies specializing in deliveries. Uber has also partnered with online retail outlets such as Shopify to allow consumers to choose UberRush as a delivery option.
When combining the two, customers will be able to receive their online orders within hours of making the purchase, increasing online shoppers’ urge to buy that much more inevitable.
Each Uber Rush delivery will cost the merchant between $5-7, as Uber will pay the delivery driver 75-80 percent of the fee and keep the remaining revenue. It’s a similar strategy used by on-demand delivery service Postmates, which claims a percentage of each sale.
Although having convenient delivery comes at a hefty price, Uber’s decision to turn Uber Rush into a legit business instead of an experiment shows the confidence the rideshare giant has in its latest invention.
Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.